Michael Wittry has been investing in his Roth IRA account for 25 years. Two years ago, his account was worth $239,000. After losing1/3 of its original value, it then gained 1/2 of its new value back.Original Account value:Original value lost:New value gained back:$ 239,0001/31/2Required:Using the information above, answer the following questions:1. What was his 1/3 loss?2. What does Michael's account total after the 1/3 loss?3. What is the current value of his Roth IRA?

Let's break down the information given:Original account value: $239,000Original value lost: 1/3 of…

Answered: Michael Wittry has been investing in…

Personal Finance

13th Edition

ISBN:9781337669214

Author:GARMAN

Publisher:GARMAN

Chapter5: Managing Checking And Savings Accounts

Section: Chapter Questions

Problem 8FPC

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Michael writtey has been investing in his Roth IRA retirement account for 20 years. Two years ago, his account was worth $215,658. After losing 1/3 of its original value, it then gained 1/2 of its new value back. What is the current value of his Roth IRA?
Today, your investing account has a balance of $3,600. You opened the account with a deposit of $1,200 and made no other contributions. If you have earned a compound annual rate of return of 14.5%, how long ago did you make your initial investment?
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Your grandfather put some money in an account for you on the day you were born. You are now 18 years old and are allowed to withdraw the money for the first time. The account currently has $3,996 in it and pays an 8% interest rate. a. How much money would be in the account if you left the money there until your 25th birthday? b. What if you left the money until your 65th birthday? c. How much money did your grandfather originally put in the account? a. How much money would be in the account if you left the money there until your 25th birthday? If you left the money there until your 25th birthday, the amount in the account would be $ ☐ (Round to the nearest cent.)
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Your grandfather put some money in an account for you on the day you were born. You are now 18 years old and are allowed to withdraw the money for the first time. The account currently has $8059 in it and pays an 12% interest rate. a. How much money would be in the account if you left the money there until your 25th birthday? b. What if you left the money until your 65th birthday? c. How much money did your grandfather originally put in the account?
John deposits an amount of X into an account at time 0. The account balance at the end of 10 years is $2,500. What is the initial amount X deposited, given an accumulation function of a(t)=sqrt(1+0.125t)?
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Suppose you are 40 years old. Your only debt is a mortgage = $450,000. The current value of your house = $500,000. You expect to work another 20 years, earning $100,000 per year. You have accumulated $80,000 in financial assets that you plan to spend when you retire. a) What is the value of your home equity? b) What is the value of your Net worth (or material wealth) c) What is the (present) value of expected future earnings from employment (you can assume you discount earnings at an interest rate = 0%)
C. D. Rom has just given an insurance company $32,500. In return, he will receive an annuity of $3,800 for 20 years. At what rate of return must the insurance company invest this $32,500 in order to make the annual payments? Use Appendix D for an approximate answer, but calculate your final answer using the financial calculator method. (Do not round intermediate calculations. Round your final answer to 2 decimal places.) Rate of return %

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